By Admin on Jul 22, 2009 in Renting & Real Estate
wonderer asked:
I recently inherited a New England farmhouse assessed at $400,000. The roof needs to be replaced along with plumbing, electric etc. My credit is in the low 600 range and I am not working, as I am a full time student. I am a disabled vet so I do have a set income and my wife does as well. Would it be hard for us to get a equity loan for around 160, 000 with less then good credit.
I recently inherited a New England farmhouse assessed at $400,000. The roof needs to be replaced along with plumbing, electric etc. My credit is in the low 600 range and I am not working, as I am a full time student. I am a disabled vet so I do have a set income and my wife does as well. Would it be hard for us to get a equity loan for around 160, 000 with less then good credit.
Very hard, you need to be really rich to get one/
Antarctica | Jul 23, 2009 | Reply
yea its going to be real tough to get
that….
Bill | Jul 24, 2009 | Reply
Getting a loan for $160,000 with credit in the low 600′s will be hard. The other aspect they look at is your ability to repay. You have to be able to afford the payments. I don’t know what your income is like, but you can’t pay more 28% of your gross income on housing payment. On $160,000 loan you’ll probably have to pay ~$900 a month. You’d need gross income of ~3600 per month.
Some lender might approve you because you’d still be at ~35% LTV (loan to value), but you’ll pay a higher interest rate and you’ll be in jeopardy of losing the house.
If you take out a loan without really being able to afford it you run a real risk of losing the house.
good luck!
Rush is a band | Jul 27, 2009 | Reply